Contractor, Ltd - unpaid tax, bailiff hand delivered letter

indeeptrouble2016

Hello, new here so please be gentle with me - perhaps someone can advise?

I have been contracting for a while but have not paid any tax, despite my accountant reminders every year.

I got home today to find a hand delivered letter from a Debt Management Company (won't state the name here) heading on the right and HM Revenue and Customs heading on the left, addressed to my Ltd Company with "Warning of enforcement action" as a heading and type of Tax stated as CT which I assume would be Corporation Tax?

This is for several thousand pounds - I do not have money to pay it. I do not have any assets as such, I have no car, I live in a rented house, no savings. Company is Ltd company with my home (rented) registered as company address. I live by myself.

The letter says:

I called today to collect payment of the above ... amount or to determine your assets for sale at auction. I was unable to contact you"

It also mentions visiting again, taking control of goods enforcement action to collect debts and charging initial fee of £75.00

This is signed by name and title Field Force Officer.

I will not be at home if the person comes again as I am out early morning and back late evening.

Shall I contact them ? The website on the letter is govuk but no email, just mobile number and fax number - very strange. Postal address seems incomplete too, not even PO Box number so clearly they want me to call which I do not want to do as then I have no record of anything.

My current contract finishes in 3 weeks and I am more than likely to be completely out of work then to top it all.

Any advice please?

Yes, I know I have messed up big time and had my head in the sand but hope someone can help me and direct me how to get out of this mess.

Thanks a lot

sourcrates

It won't be from a debt management company, more likley a bailiff or a scam.

Feel free to name them.

Has court action been taken against you ?

That's the only way a bailiff would be involved, sounds a bit fishy to me.

Muttipops

Cross posted with sourcrates.... hence my very different reply.




I think your name sums it all up, but you won't be the first or the last to have not paid tax.
I would suggest that you give these people a call.....
https://www.businessdebtline.org/
because you need some very precise advice about what to do next.
I hope that helps.


sourcrates may well be correct, but that doesn't mean you should keep your head in the sand, because this will bite you on the bum, if not now, then in the future. I still think you should investigate what to do about non-payment.

indeeptrouble2016

Thank you both.

The letter is signed with a name and "Field Force Officer" - is this different than bailiffs?
With a Ltd company that has no assets, do I need to let them in at all?
If they ever come and I am at home.

Thanks

Muttipops

Has your accountant received any communications from HMRC about non-payment; I have no idea if they would or should, just wondered?

Muttipops

Me again!
Field force Officer seems a legit title...see below...


Threats to take control of goods should not be ignored, but it may be reassuring to know that:

• The first visit should be from a member of HMRC’s “Field Force”. The job of the Field Force officer is to check the debtor’s address, and make face-to-face contact with them to see if matters can be sorted out without resorting to enforcement
• Field Force officers should be able to check your up to date tax position on the spot
• The HMRC officer should act within the law, and you need not fear the illegal behaviour that is sometimes reported of bailiffs who carry out the process for other debts
• The HMRC officer cannot force entry into your premises without a court order, and such orders are very unusual

HMRC may consider taking control of goods which you consider to be ‘tools of the trade’, if you have no other assets. Vehicles are particularly at risk. The fact that HMRC can seize goods and equipment without a court order means that all threats to take control of goods should be taken very seriously.
If you do not agree that you owe the tax demanded, or believe it is a lot less, you should tell the HMRC officer. The HMRC officer will not normally consider negotiations about time to pay, once seizure of goods has started.


info is from this site....http://taxaid.org.uk/guides/taxpayers/tax-debt/enforcement-action

indeeptrouble2016

I am not sure but I do have a massive pile of letters at home that I never opened. Yup, that bad.
Feel really stupid now but not going to lie as really need help/advise.
Emailed my accountant but of course it is late so will not get a reply soon.
I will never ever work via Ltd again as I clearly have no grip over money management so if I work again - will have to go via Umbrella Company. But need to somehow sort this out first - which no doubt will mean having to close (how?) my current Ltd and start fresh somehow.

Muttipops

That's why I think business debtline should be your first port of call.

fatbelly

HMRC are an exception to the rule that there needs to be a defaulted court order before bailiffs can be instructed.

This is unlikely to have come out of the blue so you need to do some research tomorrow into what has happened here.

And business debtline seems a good place for advice

indeeptrouble2016

Thank you all again. Will try to call the advice line suggested tomorrow but it may be very difficult with their opening hours. Or maybe I will email them.

If anyone else can add to this topic, please kindly do so.

Thanks again

CrowCrow

indeeptrouble2016 wrote: »

I am not sure but I do have a massive pile of letters at home that I never opened. Yup, that bad.
Feel really stupid now but not going to lie as really need help/advise.
Emailed my accountant but of course it is late so will not get a reply soon.
I will never ever work via Ltd again as I clearly have no grip over money management so if I work again - will have to go via Umbrella Company. But need to somehow sort this out first - which no doubt will mean having to close (how?) my current Ltd and start fresh somehow.

Not that simple. Just because it's a limited company doesn't mean you can just close it and wipe your hands. If there has been impropriety by the directors, which it seems there has been by declared illegal dividends, HMRC has the power to pierce the limited liability shield and pursue you personally

You need to speak to your accountant for advice, they you need to speak to HMRC.